EU companies complain the U.S. Department of Commerce to block Chinese companies & open doors to U.S. companies
During this period of time, the U.S. Department of Commerce banned Huawei and its affiliates, SMIC, and DJI, which focuses on drones, on various unwarranted charges.
These bans not only have a negative impact on Chinese technology companies but also affect global technology supply chain companies because supplies require US approval.
EU companies containing US-based technology are also affected by the ban. These European companies also need to apply for corresponding licenses if they want to supply to the blocked companies.
It is worth noting that the US Department of Commerce has approved some US technology companies, and these companies can supply products to companies under the ban within the scope of the license.
For example, Intel, AMD, and Qualcomm have been approved to provide some semiconductor products such as core processors to Huawei.
The Financial Times recently quoted EU technology executives as saying that some US companies have so far obtained supply licenses, but European companies have not.
These EU companies cannot provide technology and parts to companies such as Huawei, but certain American companies can resume exporting some basically the same technology and parts.
Obviously, this is like the United States deliberately opening the back door to domestic US companies through a ban. This is the same as the outgoing Trump’s U.S. priority trade policy. The U.S. government uses bans to support American companies to suppress EU companies.
The reason why the entire EU can be restricted by the US ban is using US-based technology, and the use of US-based technology by EU technology companies is therefore subject to US policies.
If these companies violate the ban, US companies can no longer provide US-based technology to them, so EU companies are worried that they will be restricted to comply with US laws.
But now this situation has given the EU a very headache. The nature of the sanctions centered on the United States may have many far-reaching effects. Therefore, the EU must also change.
Now European governments are also calling for reducing their dependence on American technology, otherwise, in the future, all technologies will be controlled by the United States and the consequences will be unimaginable.
It is worth noting that among the approved supply chain companies are South Korea’s Samsung and Japan’s Sony, while South Korea and Japan themselves have relatively close relations with the United States.